Why is Portugal More Developed than Mexico: A Comprehensive Analysis

Introduction

The comparison of Portugal and Mexico's level of development often draws attention due to their different historical and economic trajectories. Portugal, an ancient European nation with a rich history dating back to 1139, has achieved a higher level of development compared to Mexico, a country that only gained independence in the 19th century. This article delves into the factors contributing to Portugal's more developed status, supported by key economic indicators such as GDP per capita and Human Development Index (HDI).

Historical and Geographical Context

One of the key differences between Portugal and Mexico lies in their historical development and geographical advantages. Portugal, one of the oldest countries in Europe, has maintained stable borders largely unchanged since the 12th century. In contrast, Mexico only became a country in the mid-19th century, significantly later than Portugal. This extended period of stability and continuous governance has allowed Portugal to establish a strong foundation for economic development and social progress.

Portugal's geographical location also contributes to its development. The country boasts a small population of approximately 10 million people, which is nearly half the size of Mexico’s population. However, its strategic position, with the majority of its borders facing the Atlantic, provides access to a vast market and facilitates international trade. While Mexico's other border with Central America is closer to Central Europe, its geographical isolation from major trading partners can be a significant disadvantage.

Economic Indicators: GDP per Capita and HDI

When we examine the latest economic data, it becomes clear why Portugal is more developed than Mexico. According to recent statistics, Portugal's GDP per capita is approximately $20,000 USD, while Mexico's stands at around $8,000 USD. These figures indicate that Portugal has a significantly higher average income per person, which is a primary indicator of a more developed economy.

Furthermore, the Human Development Index (HDI) provides a comprehensive measure of a country's overall development. Portugal's HDI is 843, which places it in the category of a developed country. Mexico's HDI, on the other hand, is 762, indicating that it has a lower level of development overall. These differences highlight the disparity in the quality of life and access to resources between the two countries.

Economic Stability and Corruption

A critical factor in Portugal's development is its relative economic stability and low levels of corruption. Portugal has established a robust regulatory framework and a transparent government system, which fosters trust and investment. In contrast, Mexico has faced issues with corruption and political instability, which can hinder economic growth and deter investment.

The World Economic Forum's Global Competitiveness Report also supports this view, showing that Portugal ranks higher in terms of economic competitiveness and business environment compared to Mexico. This is further underlined by the country's consistent performance in indices such as the Corruption Perceptions Index, where Portugal typically ranks much higher than Mexico.

Industrial Output and Urbanization

Another aspect contributing to Portugal's more developed status is its industrial output and urbanization. Despite the smaller city of Lisbon being similar in size to Mexico City, Portugal has managed to develop a thriving industrial sector and a robust business environment. This is evident in the presence of modern business buildings, well-developed infrastructure, and a diverse range of industries.

Lisbon, while not as large as Mexico City, still showcases modern architectural and urban developments. Additionally, Portugal's industrial sector has diversified over the years, contributing to its economic resilience. Mexico, while having some significant urban centers, may not have the same level of industrial diversity or modern urban infrastructure.

Conclusion

The comparison between Portugal and Mexico reveals that Portugal's advanced development level is the result of a combination of historical foundations, geographical advantages, and a focus on economic stability and industrial growth. While these factors may not be immediately apparent to visitors, they have contributed significantly to Portugal's current state of development.

Understanding these key factors can help in better appreciating the development trajectories of both countries and provide insights into the steps that can be taken to enhance the development of less developed nations.

References:

World Economic Forum - Global Competitiveness Report Corruption Perceptions Index World Bank - GDP Per Capita and Human Development Index (HDI)